In any industry, the relationships you develop with your clients are everything. The metal industry is no exception to this rule, but some companies are finding that their larger clients are increasing payment terms which can cause issues. In this article, we’ll be discussing ways you can work better with these companies, to make sure everyone comes out on top.


When larger companies extend payment terms to squeeze 30 more days of interest from their own money, this can have an incredibly detrimental effect on their suppliers, in ways that they may not realise. If supply chains in the metal industry aren’t receiving prompt payment for their services, the risk of not surviving the inevitable revenue swings becomes much higher.

By 2016, the days for accounts receivable had crept up to 26. For businesses of any size, that trend of gradual increase in payment terms can end up being incredibly damaging, especially when these clients represent a larger chunk of revenue. It’s bad for business, but executives in larger companies are being rewarded for this behaviour. By wrangling every last cent from suppliers, larger clients are able to boost profits for themselves.

Some argue that business is a case of survival of the fittest, but industries that offer diversity are better off, especially when they are driven to innovate and revolutionise their products and services. With closing profit margins, businesses may be forced to scramble and save where they can, hindering research and development. This affects the entire supply chain- an industry that is starved by large clients rather than fuelled by innovation has detrimental impacts for everyone involved.

In order to combat this, it’s best to practice what you preach. Favour trust and good faith over fear and mistrust to create an industry in which everyone can thrive. Hopefully, larger companies will begin to realise that supply chains are stronger when we work together through collaborative relationships.

Acra stock a dynamic range of new and used sheet metal manufacturing machinery. To learn more, get in touch by calling 03 9794 6675.